PNB Share Price in Focus as It Gets Appointed to Liquidate 32 Defunct Banks

In a significant move to clear historical financial clutter, the Ministry of Finance has officially appointed Punjab National Bank (PNB) as the liquidator for 32 banking companies that stopped operating long ago. At 11:38 AM, the PNB share price was up 0.84% and was trading at ₹110.36.

This decision, announced in a notification dated June 3, 2025, aims to speed up the process of closing down these inactive banks, some of which have been stuck in legal limbo for decades.

What Does This Appointment Mean for the PNB Share Price?

This appointment gives PNB the power to manage the winding-up proceedings for these banks, as per Section 39 of the Banking Regulation Act, 1949. These cases are currently pending before the Calcutta High Court. The move is expected to bring finality to old banking cases that have been unresolved for many years. This will positively impact the PNB share price.

A Look at Some of the Defunct Banks for PNB

The list of banks now under PNB's liquidation includes names that were once part of India's banking history. Some of them are:

• Associated Bank of Tripura
• Bank of Calcutta Ltd.
• Bengal Bank Ltd.
• Nath Bank Ltd.
• Sonar Bangla Bank Ltd.
• Tripura Modern Bank Ltd.

The full list includes 32 entities, which are detailed in the official notification.

Background and Importance of the Move

Most of these banks stopped their operations many decades ago. This happened due to various reasons like not having enough money (insolvency), poor management, or breaking banking rules. However, the absence of a dedicated liquidator has, until now, delayed the settlement of outstanding claims and the proper distribution of their assets.

The appointment of PNB, which is India's second-largest public sector bank, is a major administrative step. It signals a strong commitment towards finally closing these winding-up cases. The notification, issued under S.O. 2476(E) by Manasa Gangotri Kata, Director, Financial Services, is part of ongoing efforts to make India's financial system more organised and transparent.

What This Means for Those Affected

This development is particularly important for several groups:

• Former Employees: Many who worked for these banks might still be waiting for their rightful dues.
• Creditors: Businesses or individuals who are owed money by these defunct banks can now hope for a clear path to recovery.
• Legal and Regulatory Authorities: This move helps these authorities finalise their compliance procedures related to these old cases.

With PNB now in charge, the liquidation process will follow a clear legal and financial path. This will be done in line with guidelines from the Reserve Bank of India (RBI) and orders from the court.

Read more: IPO Race Ahead: HDB Financial, Vikram Solar, and 4 Others Get Green Light From SEBI 

Conclusion

This official notification shows the government's strong commitment to clearing out old financial issues and making the Indian banking sector more efficient. For everyone involved with these listed banks, this means they can now expect a more structured and open process to resolve these long-standing matters.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.